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Lawsuit Won't Derail Pennsylvania Slots

PENNSYLVANIA – As reported by the Pittsburgh Post-Gazette: "The Rendell administration is confident that a lawsuit filed earlier this week by the state police union over gambling-related background checks won't derail the startup of Pennsylvania's slot machine industry.

"Kate Philips, spokeswoman for Gov. Ed Rendell, said yesterday that state officials aren't anticipating a delay in the award of slots licenses as a result of the lawsuit, which challenges the power of the state Gaming Control Board to hire private companies to do background checks.

"…The lawsuit stems from a decision by the Gaming Control Board to negotiate no-bid contracts with three private firms to do background checks of gambling companies that will operate and the vendors that will supply slot machine parlors and casinos. As many as 30,000 people and firms could be investigated.

"The troopers union maintains the 2004 law that legalized slots gambling gave state police the right to conduct the background checks. It also says that the seven-member Gaming Control Board, a legislative body, would be in violation of the constitutional separation of powers if it performs an executive function like law enforcement.

"…The lawsuit comes as the board is preparing to award the first conditional licenses for slots parlors at racetracks in Pennsylvania. The board hopes to have those licenses issued by early next year for The Meadows in Washington County and other tracks…"

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